Sinopec Yizheng Chemical Fiber Co., Ltd. signed a contract with Far East Holding Group Co., Ltd. on December 13. According to the contract, the two parties will invest US$ 250 million in setting up the joint venture – Far East Yizheng Chemical Fiber Co., Ltd., so as to construct the PTA project with annual output of 2 million tons. The project will break ground in 2012 with a construction period of 27-30 months.

The joint venture will mainly involve in PTA production and marketing. Yizheng will invest US$ 100 million, which will be paid in CNY cash, hold 40% of the share; Far East Holding will invest US$ 150 million, to be paid in dollar cash. As the largest chemical fiber and raw material producer in China, Yizheng Chemical Fiber mainly involve in production and marketing business of polyester chips and polyester fiber.